Jade
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I think the truth lies somewhere in between. The article is pointing the currency value management of China and not about manipulation. The Chines currency is manipulated and we all know that. But the point here is not manipulation but volatility management. If the reserve bank of India pumped in the currency that was in demand for a short time in order to balance out the sharp spikes then small businesses need not take the shock of the fluctuating rupee. Yes we have to learn from China in order to remove fluctuations. But I disagree the interpretation of this article by many as an attempt to learn from a manipulating ideology.
Ramu, volatility management is too broad a term. The main reason for the value of rupee going down is inflation. The congress government has proved inept in controlling inflation despite using interest rates as a too so many times in the past year, and interest rates are the main tool that central Banks use to control inflation. If even interest rates are taken away as a controlling instruments in the name managing exchange rates from the Reserve Bank, god save the common man.
The need of the hour is not about managing currency, but bringing down inflation